Stock Market & Financial Investment News

Bridgepoint Education says DOJ declines to intervene in 'qui tam' complaintBridgepoint Education (BPI) disclosed in a regulatory filing after the close on Monday that the United States Department of Justice has declined to intervene in a previously disclosed "qui tam" complaint unsealed on December 26. A qui tam action is a lawsuit brought by a private citizen, or "whistle blower," on behalf of the government against a company believed to have violated the law in the performance of a government contract or in violation of a government regulation. The qui tam complaint against Bridgepoint alleges, among other things, that since March 10, 2005, Bridgepoint has caused its institutions, Ashford University and University of the Rockies, to violate the Federal False Claims Act by falsely certifying to the U.S. Department of Education that the institutions were in compliance with various regulations that require compliance with federal rules regarding the payment of incentive compensation to enrollment personnel in connection with the institutions' participation in student financial aid programs. The company stated, "We are currently evaluating the complaint and intend to vigorously defend against the allegations set forth in the complaint once it is served."